You have decided to start a business selling whatsits. You form a corporation, Whatsits, Inc. You paid $10 per share for 12,000 shares of stock on January 1, 2017. Next the company borrowed $60,000 from a bank. For the $60,000 borrowed from the bank, the company agrees to pay back that amount on December 31, 2025 and to pay interest at 10% at the end of each year. On January 1, 2017, the company bought 10 whatsits for $4,000 each. During the year it sold 8 whatsits for $8,000 each. The company also paid a security deposit of $5,000, wages of $2,500, and 12 months of rent, $12,000. Whatsits, Inc. bought a delivery van on December 31st that cost $15,000, putting $5,000 down on the van and agreeing to pay the balance next year. On December 31 the company paid the first years interest to the bank. At the end of the year the company owed $ 500 to employees. The tax rate is 30% of income before taxes and the taxes will be paid in 2018. Prepare T accounts, an income statement, statement of owners equity and a balance sheet.

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Widgets Problem Ending Cash $31,000 Total Assets $58,000 Total Current Liabilities $15,900 Total Owners Equity $12,100 Operating Income (Income From Operations), $6,000 Net Income, $2,100